||This paper describes „rises and falls of the Turkish economy on it’s way towards European Union“ since the early 1980s till nowadays. There are four separate sections. In the first one, we begin by providing a short review of the economic development in Turkey in 1980 – 2000 period. In what follows, we analyze a serious currency crisis which Turkey experienced in 2000 – 2001. Experts’ opinions about explaining causes of this crisis are also included. One extra section is devoted to the high and chronic inflation which goes hand in hand with economic development in Turkey since the 1970s. In the final section we discuss the current economic situation and Turkey’s efforts in coming closer to the EU. In the end, we offer some forecasts presented by existing literature about prospective effect of Turkish membership on EU and Turkey itself.